FSA to publish report into RBS near-collapse

The FSA will tomorrow publish its report into the near collapse of Royal Bank of Scotland and is expected to say the bank lost sight of "core fundamentals of capital, liquidity, asset quality and risk" for more than a year before it was rescued by the Government.

The City regulator is also expected to raise questions over incentive arrangements for City advisers whose fee arrangements are dependent on deals such as RBS's £49bn takeover of ABN Amro.